If you’re shopping for a mortgage in Spruce Grove, Stony Plain, Parkland County, the Edmonton region, or elsewhere, you have no doubt been faced with choosing between a floating, or variable, mortgage rate, or a rate that is fixed for a period of time.  Five-year fixed-rate mortgages are especially popular because they provide mortgage holders the security of knowing exactly how much they will pay over the term of the mortgage.  People choose fixed-rate mortgages despite the fact that variable-rate mortgages have been shown over time to save significant amounts of money.

But a recent article on the CBC News website entitled “5 reasons why a fixed-rate mortgage could be your best bet” could make the variable-rate mortgage crowd rethink their choices.

The article points out several factors that suddenly make fixed-rate mortgages attractive for reasons other than no surprises about the amount of your payments.  Posted mortgage rates are being discounted more than they used to be when a consumer locks in for 5 years.  Secondly, the gap between the higher rate for fixed-rate mortgages and the discounted variable rate is narrowing.  That is, the variable rate is not being discounted as much, and fixed rates have dropped.  What’s more, mortgage brokers may be able to negotiate a fixed rate that is considerably lower than the fixed rate offered by the big banks, a rate that is in fact only slightly higher than the variable rate.  Combine these bargains with a variety of fixed terms, some as short as two years, and all of a sudden the fixed-rate mortgage is a contender!

The article concludes by stating that rates are and will likely remain at historic lows so consumers can’t really go wrong no matter what kind of mortgage they choose.  Please read the full article for all the details.

I work with several mortgage brokers and would be happy to help you get pre-approved for a mortgage prior to showing you just the right property!  Call me at 780-910-9669, email me at barry@barryt.ca, or contact me here.

Do you have too much stuff?  In our consumer-oriented society, whether we live in the city of Spruce Grove, a smaller community like Stony Plain, or on an acreage or country estate in the County of Parkland, it’s easy to accumulate “stuff”.  We might not even notice just how much stuff we’ve accumulated until it’s time to sell our homes.  But what if we could train ourselves to be more mindful of everything we bring into our homes so that moving to a new house is not such a chore?

An article in the Grove Examiner, published August 12, 2011, suggests some questions to ask ourselves before we commit to buying anything.  Paying attention to what we buy will save us money, save the environment, and maybe even do away with the need to move to a bigger house!  Thanks to Craig and Layla Baird, “The Green Couple”, for allowing their article to be posted here in its entirety.

Things to consider prior to your next consumer purchase

Craig and Layla Baird, The Green Couple

Every time you go out to buy something, what you buy has an impact on the environment.

That purchase has an impact by the waste it produces when it is manufactured, and the waste that is produced when you use it and when you are done with it.  In addition, the environmental impact of the production, transportation and consumption of the product has an effect on our planet.

This is why it is important to ask yourself the “Purchase Questions”.  These questions are:

1.     Does the cost of the item warrant the benefit we may receive from it?

This means that if the benefit is just an immediate gratification (such as a new pair of shoes that we really don’t need), then it is not worth the long-term cost.

2.     How much will this product be used after its initial ‘neatness’ wears off?

Buying one of those dancing electric animals is a perfect example of this.  It may seem neat now, but it will end up in the closet soon enough and likely long before you recoup the expense in enjoyment.

3.     Can it be recycled or given away later?

If it can, it makes buying it easier because someone else can get use out of it after we no longer use it.

4.     Where could this money be better spent?

If it could go to bills, mortgage, charity or anything else instead of the product, maybe it should be directed that way. 

5.     Why are we buying this product?

If the only reason is because we just saw it, then it is not a good buy.  Impulse buys are not something we want to do.  As well, if we buy it because we saw it on television, then perhaps again it is not a good buy.

Asking yourself those questions can not only save you money, but they can help you save the environment as well.

Need help finding homes for extra stuff?  See my blog article “Getting Rid of Stuff”. 

I’m happy to help with all your real estate needs.  Call me at 780-910-9669, email me at barry@barryt.ca, or contact me here. 

My clients in Spruce Grove, Stony Plain, Parkland County and the Edmonton area have lots of questions, and I’m happy to answer them!  This article is Part 2 of a series that addresses the most common questions I get from buyers. 

How much of a deposit do I have to give when I make an offer?

This depends on the type of property you are purchasing and how you are purchasing it.  For instance, if you are purchasing a property between $200,000 and $300,000, I recommend a deposit of $3000 to $5000.  The larger the purchase price of the property, the more the deposit should be.  For purchases over $400,000, I would recommend a minimum deposit of $5000.  The deposit may also be an item that the seller wants to negotiate.  The seller may expect a larger deposit to ensure your commitment to the purchase.

When is the deposit payable?

The deposit is submitted with any offer and payable immediately after your offer is accepted by both parties.  The deposit is given to the real estate company that has listed the property and is placed in a trust account until you take possession.  The deposit forms part of your total down payment.

Can I lose my deposit?

Generally speaking, the only time you can lose your deposit is if you remove conditions on your offer and do not take possession of the property as agreed in your contract.  BUT:  you should discuss this with your REALTOR®.  If you cannot fulfill the conditions in the contract (for example, you are not approved for financing), your deposit will be returned to you, provided your financial institution will supply upon request a letter to the sellers and their REALTOR®, stating you are not approved for financing.

When is my down payment due?

Your total down payment (usually by certified cheque or bank draft) is not due until you see the lawyer to sign all of the paperwork.  This typically happens a week or two before possession day.  The only money that is payable when you write the offer is the deposit.  This deposit becomes part of the total down payment.  Your lawyer will advise you of the total amount to bring with you when you sign the papers; this amount usually includes lawyer fees and disbursements.

How much money will I need for other costs besides my down payment if I purchase a property?

At minimum, I recommend that you budget $3000 to $5000 for basic items such as:

• lawyer fees and disbursements which will cost between $1000 to $1500. (Disbursements are recoverable expenses the lawyer pays on your behalf.)
• property tax adjustments (cost will be a proportion of the annual taxes, depending on when in the year you take possession)
• home inspection (about $400-$500)
• title insurance (about $250), if required.

There could be other costs associated with your purchase depending on your situation.  The costs listed above are general expenses that most buyers will incur.

If you don’t see your question here, it might be answered in the Buyers Guide section of my website.  Or, feel free to contact me any time by email at barry@barryt.ca or by phone 780-910-9669.